WGC Highlights Status of Gold’s Climate Impacts

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) provides comprehensive analysis of the current status of gold’s climate impacts. Further, it analyzes gold’s future role in global decarbonisation efforts.

The report titled ‘Gold and Climate Change: Current and Future Impacts’ released Wednesday aims to provide greater clarity with respect to gold’s emission profile and its important role as a climate mitigation asset in the future.

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According to WGC, the precious metal’s downstream uses including gold in bullion, jewellery and electronic products are found to have little material impact on gold’s overall carbon footprint or GHG emissions. It identifies the primary source of GHG emissions in the gold supply chain as the usage of energy and fuel in gold mine production. This could also transition towards a net zero pathway in future, WGC notes.

The report outlines gold’s key role in supporting the transition to a lower-carbon economy through decarbonisation efforts. Investors should consider gold as a resilient asset, which is less likely to be negatively impacted by the physical and transition risks associated with climate change, noted Terry Heymann, CFO, WGC.

WGC report says that gold has a relatively robust risk-return profile, in comparison to other mainstream assets, in the context of physical and transition risks associated with climate. The heightened market volatility will further support and boost the investment demand for gold, it said.